Discrepancies in SEC Filing Threaten American CryptoFed’s Registration

Following the discovery of irregularities in the Form S-1 registration statement dated September 17, 2021 by the United States Securities and Exchange Commission (SEC), the first decentralized autonomous organization (DAO) in the United States in receiving legal recognition is in danger of having its registration revoked. This organization is known as the American CryptoFed DAO. In July 2021, the Wyoming Secretary of State’s office recognized American CryptoFed as a legal company. At the time, the organization’s CEO, Marian Orr, was of the opinion that “Wyoming is perhaps the top blockchain jurisdiction in the world.” On the other hand, administrative proceedings against the DAO were opened by the SEC on November 18, 2022, in order to decide whether or not to issue a suspension order.

Should the SEC issue a stop order, American CryptoFed’s registration will be revoked and sales of the internal Ducat and Locke tokens will be prohibited.

American CryptoFed’s Form S-1 registration statement allegedly lacks essential information, such as audited financial statements and specific details about the company’s operations and management, as stated by the Securities and Exchange Commission’s Division of Enforcement (SEC).

Furthermore, the SEC opined that the filing by American CryptoFed had “misleading representations and omissions” and that it described the tokens as securities in a way that was not consistent.